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Electricity Alexander Graham Bell created telephone to increase communicationAlexander Graham Bell created telephone to increase communication Thomas Edison combined gas and metal filament to create electric light bulbs.Thomas Edison combined gas and metal filament to create electric light bulbs. Electricity replaced steam and coal in factoriesElectricity replaced steam and coal in factories Also used on streetcars and subwaysAlso used on streetcars and subways Each new invention increased people’s standard of living.Each new invention increased people’s standard of living.

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Growth of Railroads Transcontinental Railroad completed in 1869 at Promontory Point, UtahTranscontinental Railroad completed in 1869 at Promontory Point, Utah Built in the west by Chinese ImmigrantsBuilt in the west by Chinese Immigrants Worked 12 Hour Days, and 6-Day WeeksWorked 12 Hour Days, and 6-Day Weeks Made $26-$35 a monthMade $26-$35 a month Trip across U.S. was reduced from several months, to a few weeks. Trip across U.S. was reduced from several months, to a few weeks.

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A National Market Railroads now linked both coasts of the United StatesRailroads now linked both coasts of the United States Raw goods and materials are linked to larger marketsRaw goods and materials are linked to larger markets National Producers could make and ship goods cheaper than local producersNational Producers could make and ship goods cheaper than local producers Creation of Department Stores, chain stores and mail order houses.Creation of Department Stores, chain stores and mail order houses.

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Railroad Impact on Population Between 1850 and 1900 the population more than tripled.Between 1850 and 1900 the population more than tripled. High Birthrates and increased immigrationHigh Birthrates and increased immigration Created a favorable condition for business expansionCreated a favorable condition for business expansion Demand for goods increasedDemand for goods increased Supply of cheap labor increasedSupply of cheap labor increased

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New Types of Business Organizations Before Civil War, most businesses were owned by individuals or partnersBefore Civil War, most businesses were owned by individuals or partners After the war, corporations became popularAfter the war, corporations became popular Separate “person”Separate “person” Allows for many people to pool money togetherAllows for many people to pool money together

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Entrepreneurship and Philanthropy By 1870’s entrepreneurs began to have a dominant influence on American businessBy 1870’s entrepreneurs began to have a dominant influence on American business Lowered the price of goods and improved their qualityLowered the price of goods and improved their quality Made HUGE profits for themselvesMade HUGE profits for themselves Known as “Captains of Industry” because they forged modern industrial economyKnown as “Captains of Industry” because they forged modern industrial economy Also known as “robber barons” – used ruthless tactics to destroy competitors and keep wages lowAlso known as “robber barons” – used ruthless tactics to destroy competitors and keep wages low

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Andrew Carnegie Scottish Immigrant, began his life pennilessScottish Immigrant, began his life penniless After Civil War, he invested in ironworks and built steel mills in PittsburghAfter Civil War, he invested in ironworks and built steel mills in Pittsburgh Used profits to buy more mills and created Carnegie Steel CorporationUsed profits to buy more mills and created Carnegie Steel Corporation

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Carnegie Controlled all phases of steel productionControlled all phases of steel production Iron ore fields, coal mines, steel mills and shipsIron ore fields, coal mines, steel mills and ships Paid low wages, and crushed attempts at unions in his millsPaid low wages, and crushed attempts at unions in his mills Later in life, he gave away $350 Million to build libraries and endow universities Later in life, he gave away $350 Million to build libraries and endow universities

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John D. Rockefeller Built an oil refinery in Cleveland, OhioBuilt an oil refinery in Cleveland, Ohio In 1870 founded the Standard Oil CompanyIn 1870 founded the Standard Oil Company By 1879, he controlled 90% of oil refining in the U.S.By 1879, he controlled 90% of oil refining in the U.S. Created a monopolyCreated a monopoly Forced the railroads to pay “secret” low rates, and charged his competitors higher ratesForced the railroads to pay “secret” low rates, and charged his competitors higher rates

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Interstate Commerce Act (1887) Railroads charged higher rates to local farmers on shorter routesRailroads charged higher rates to local farmers on shorter routes U.S. Supreme Court said only national government could regulate interstate commerceU.S. Supreme Court said only national government could regulate interstate commerce The Interstate Commerce Act prohibits unfair practices by railroadsThe Interstate Commerce Act prohibits unfair practices by railroads Created Interstate Commerce Commission to enforce the actCreated Interstate Commerce Commission to enforce the act

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Sherman Anti-Trust Act Was created to stop monopoliesWas created to stop monopolies Marked a significant change in Congress’ attitude towards big businessMarked a significant change in Congress’ attitude towards big business Before – Laissez-faire – little government interferenceBefore – Laissez-faire – little government interference After – More control by CongressAfter – More control by Congress

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Conditions of Labor Average workday – hoursAverage workday – hours Average work week – 6 DaysAverage work week – 6 Days Average pay - $3-$12 a weekAverage pay - $3-$12 a week Even lower wages for immigrants, women and childrenEven lower wages for immigrants, women and children

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Poor Conditions Workers became nothing more than a cog in a companies machineWorkers became nothing more than a cog in a companies machine Work became less skilled, more repetitive and boringWork became less skilled, more repetitive and boring Very little if any safety.Very little if any safety. Thousands killed or injured every yearThousands killed or injured every year

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Child Labor Textile Mills and Coal Mines used children to preform special tasksTextile Mills and Coal Mines used children to preform special tasks Smaller hands fit well into small parts of machinesSmaller hands fit well into small parts of machines 1/5 Children worked outside the home in /5 Children worked outside the home in 1910 Work = no school = little chance of increased standard of living Work = no school = little chance of increased standard of living

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Rise of Unions Knights of Labor – joined together all skilled and unskilled workersKnights of Labor – joined together all skilled and unskilled workers Demanded an 8 hour work day, higher wages and safety codesDemanded an 8 hour work day, higher wages and safety codes Grew rapidly in 1880’s, but fell apart after failed strikesGrew rapidly in 1880’s, but fell apart after failed strikes

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American Federation of Labor (AFL) Founded by Samuel Gompers in 1881Founded by Samuel Gompers in 1881 Sought “Closed Shops” where only union members could be hiredSought “Closed Shops” where only union members could be hired AFL became weakened by the exclusion of unskilled workersAFL became weakened by the exclusion of unskilled workers By 1910 less than 5% of American workers were unionizedBy 1910 less than 5% of American workers were unionized

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Government and Unions Business leaders often contributed to politicians campaignsBusiness leaders often contributed to politicians campaigns Politicians saw workers as greedy and businesses as good for American prosperityPoliticians saw workers as greedy and businesses as good for American prosperity

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Government and Unions Between 1880 and 1900 there were 20,000 strikes involving 6 million workersBetween 1880 and 1900 there were 20,000 strikes involving 6 million workers Government saw this as a disruption of the American economyGovernment saw this as a disruption of the American economy Supreme Court ruled that unions were illegal combinations in restraint of tradeSupreme Court ruled that unions were illegal combinations in restraint of trade

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Haymarket Strike of 1886 Most Americans believed that businesses should have the right to hire and fire employees as they pleasedMost Americans believed that businesses should have the right to hire and fire employees as they pleased Haymarket Affair of labor leaders were blamed when a bomb exploded during a demonstration of strikers in Chicago.Haymarket Affair of labor leaders were blamed when a bomb exploded during a demonstration of strikers in Chicago. 7 Policemen killed and 67 severely wounded7 Policemen killed and 67 severely wounded